| rliggayu |
| Lately I'm seeing a lot of red so I had to change my way of investing and put everything in Fixed and Government Funds, so what do you guys think? |
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| DaleB |
That would seem prudent for these times.
However, it is often difficult to determine how often one should change course. Previously, before my 401K was rolled into an IRA (I am retired), it was easy for me to make changes as often I thought I needed to. Now, I have a financial advisor and a much more diviserfied portfolio, so such decisions are not made as easily, and for the most part that's probably better.
I guess my main point is everyone has to weigh those decisions for themselves based on their own individual situation, and tolerance level.
There are some very solid securities out there that one could argue in the long run are better to keep than change out to fixed and government bonds with a down economy. It depends so much on the 'mix' you have already. With the proper blend you would hope it would be self-correcting, but not so much that it will not realize some good gains in good times. I would imagine your portfolio, and yes it's none of my business..but being a 401 K is heavy into mutual funds, and you have quite a spectrum there to choose from these days, I won't say you will get bad advic e here, but when it comes to some one else's money I might tell them what I do or what options there are, but I would never recommend anything definite. |
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| frostyra |
| Yep, I put mine into fixed income stuff over a year ago just to stop the bleeding; then just this week rolled-over my 401K into an IRA which is initially in fixed incomes. I want to see a sustained upswing before getting any of my retirement stuff back into "securities." I'm retired, too, for just over 9 months -- although I'm working part-time at my favorite place, the local all-classical public radio station (www.theclassicalstation.org). |
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| DaleB |
That's cool job! Good for you!
I would do something I really liked just for the enjoyment of doing it.
I am on my 6th month of retirement.
Right now I work at my old job when they need some help, but I am ready for something different. |
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| hondacuraworld |
Well, you could always move to Buffalo and come and work here :)
You don't mind snow, do ya? This happened overnight around this past Christmas.....remember this thread? |
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| Alvin |
quote:
Originally posted by rliggayu
Lately I'm seeing a lot of red so I had to change my way of investing and put everything in Fixed and Government Funds, so what do you guys think?
Bad idea. Classic sell low/ buy high behavior. There's an interesting stat that goes something like, if you are out of the market for the 10 biggest up days, you will miss 90% of the return that year. You think you can pick the right 10? The important thing is to come up with an asset allocation (balance between stock, bonds, etc) that you are comfortable with and stick with it, esp. in your 401, which tends to have the longest time horizon for most investors.
That said, who knows where the market is going from here. |
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| DaleB |
quote:
Originally posted by hondacuraworld
Well, you could always move to Buffalo and come and work here :)
You don't mind snow, do ya? This happened overnight around this past Christmas.....remember this thread?
Looking at the pictures is fine. I don't liive in environments like that. But I realize, someone has to. :2: |
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| JPOW |
| I agree with Alvin, now is NOT the time to change allocations in your 401k. You already got hit with some pretty steep losses, now you need to stay with your allocations to re-gain (over time) what you lost and then some. Of course this is only good when you are not ready to retire. |
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